Gordon E. Moore is a computer engineer with a Ph.D. he earned at the California Institute of Technology in 1954. Today he is 92 years old and his personal net worth is $12 billion. He made his fortune as the founder of the Intel Corporation.
It was in 1965 that Gordon Moore made a prediction that would come to be known as Moore’s Law. It has been called “the greatest technological prediction” of the past 50 years. It would also end up becoming a benchmark whose influence is so profound, it would be difficult to overstate its importance.
What is Moore’s Law? Simply put, it’s the prediction that the number of transistors that could be fitted onto a single microchip would be doubled every two years. Ten years after he made his prediction, the number of transistors on a single microchip reached 75,000.
Gordon Moore had been 100% correct. Furthermore, his prediction has continued to hold true throughout the decades. This measure became among the most important benchmarks and measures of progress in the chip development industry. It was such an accurate measure of progress it influenced many other facets of the computer business, including the critically important element of investment.
With Moore’s Law, an investor could better predict how much money he or she might make by investing in certain technologies based on how that technology would develop into something much greater and powerful every two years. Also, consider that the cost of a component is almost exactly inversely proportional to the number of components. Understanding this is invaluable.
It also makes predictions about what technology will be capable of doing much easier. For example, the influential MIT Technology Review for the past 20 years has published its predictions about what will be the most significant technological breakthrough of the coming year. This is only possible because of the computational analysis inherent in Moore’s Law.
By the way, if a chip had 75,000 transistors in 1975, how many do they have today in 2021 after doubling every two years? The answer is an astonishing 50 billion! If you apply Moore’s Law to that figure, it means that in just two years a chip should have 100 billion components.